INVESTIGATION INTO THE ROLES OF GSM IN DEVELOPING DIRECT MARKETING IN NIGERIA (A CASE STUDY OF MTN NIGERIA LIMITED)

ABSRACT

        GSM communication is vital tool Nigeria economy as most sectors depends for effective communication and development of direct relationship with direct marketing as most people use their phone for creating awareness about their product the study was conducted to investigate the value of G.S.M in developing country the study also expatiate more on the importance of G.S.M the study also look at contribution of G.S.M to overall economy development of the nation. The aims of the study was to benefit accrued in the use of G.S.M for marketing toll and development of direct marketing in the country of the study both primary and secondary data was used most G.S.M is faced with challenges and the most pressing one is high tariff changes recommendation was made based on the finding’s, high tariff charge should be reduced to enable the consumers on joy uninterrupted services. Basic amenities like good network, security, etc. should be provided to enhance the performance of G.S.M operators in Nigeria.

TABLE OF CONTENTS

Title page

Certification

Dedication

Acknowledgement

Abstract

Table of content

CHAPTER ONE

1.1    Introduction

1.2    Statement of problems of the study

1.3    Aims and objectives of the study

1.4    Signification of the study

1.5    Scope of the study

CHAPTER TWO: LITERATURE REVIEW

2.1    Introduction

2.2    Definition of G.S.M

2.3    Important of G.S.M

2.4    Challenges facing G.S.M marketing in Nigeria

2.5    Causes of high charges by G.S.M operators

2.6    hypothesis formulation

CHAPTER THREE:     RESEARCH NETHODOLOGY

• Population of the study

3.2    Sampling and sample size

3.3    Research methodology

3.4    Source of data collection

3.5    Method of data collection

3.6    Instrumentation

3.7    Validity and reliability of instrumentation

3.8    Presentation and analysis of techniques

CHAPTER FOUR

4.1    Brief History of the study

4.2    data presentation and analysis

4.3    Discussion of findings

CHAPTER FIVE

5.1    Summary of findings

5.2    Conclusion

5.3    Recommendations

          References            

CHAPTER ONE

INTRODUCTION

        Nigeria is a commercial manufacturing and transportation country. Individual people business and government we many different types of telecommunication in the country.

        Telecommunication arrived in Nigeria over 100 years ago. At independent in 1960, the country has about 18,724 phone lines. From, independence various government made several attempt to increase the number of telephone lines to Nigeria. However, these attempts failed woefully due to certain reasons, chiefly among these are monopoly of this sector by the country’s public utility Nigeria telecommunication plc. Nitel and its corrupt management. By the beginning of 1999, there were roughly 500,000 lines available for population of around 120 million Nigerians.

        Whatever uncomplimentary things, justified or not that many may have to say about the Olusegun Obasanjo administration since its in caption in May, 1999. One things has become in controvertible, this government successfully brought us a deregulated communications sector by auctioning is global system for mobile (GSM) license in January, 2001 and 285 million each and further resented a license 3 for NITEL. The administrations succeed where other before it had fail, in the end, these 3 lines the MTN is at the action. MTN communication wireless were awarded fully GSM license.

        An underlining vision for the introduction to GSM by the Nigeria government was to expand to Nigeria tele density and directly mate telephone communication cheap and accessible to common man. MTN telecommunication opens its door to its customers two days later that the ECONET wireless has opened its own, MTN has a similar package.

        Trust Nigeria, eager subscribers timbered both network operations to great available lines. These third networks NITEL was now here to be found mainly due to, its unprepared ness and internal disequilibrium.

        These two companies, according to their image makers have within two months, add mole telephone lines. Over 1 million as at the last count, into the Nigeria environment, more was ever the case in 40 years of independence.

        One years after, GSM has come to stay in Nigeria infact many have called for the introduction of the GSM telephone revolution in way, but one can also refer to GSM as a quantum leap for Nigerians infrastructure capacity building, which is a major ingredient for the much debated jump starting of the strangulated national economy. According to a World Bank comparative study on information and communication network between 1994-1997 in some African Countries, Nigerian was discovered to have 4 phone lines per 1000 people as opposed to 5 in Cameroon, 9 in Kenya, 11 in Senegal; and 15 in Zimbabwe. Another study contained in the World development report, 1999/2000 situates Nigeria as having merely 4000 telephones main lines and 0.00 mobile telephones respectively as at 1997.

        Thus, Nigerians embraced the GSM at its introduction. Expectation had always been high for the introduction of a mass based telephony which is both convenient and cheap to acquire.

        The nation treasury also benefited through license fee payments and import duties, though discounted and will continue to benefit through payroll and other taxes from these companies. Many direct and indirect jobs have been created. Such as employment by the individual operators, direct and indirect dealers, street recharge. Refill card hawkers, downright, tout selling second-hand handsets and accessories. We cam also say that the Nigerians lives of the people of Kwara State especially have been transformed and the socio-economics setting has been re-energized.

We should not neglect the fact that GSM has actually created the habit of time management in Nigeria and Kwara State particularly. This can be noticed right from the curtailment of expensive Nigeria salutations while contributing to the reduction of motor accidents on major highways due to the elimination of long journeys for pleasure and business. It is now convenient to place a call to business. As societies or relative rather than waste valuable time embarking on sometimes needless journey top among its benefit is the gait the Nigeria business environment has assumed with improved cost and information technology awardness through Wap services (Wireless Application Protocol), commerce through mobile payment system called M-payments among others further investors feels free and more secured investing in the economy now as the GSM offered a cornerstone in Nigerian’s race towards attainment of adequate infrastructure. According to most users, the cost of maintenance most have argued that call charges are too exorbitant at round 60 Naira per minute at the inception, but now about 30 Naira where as our per capital income per year in Nigeria as low. The telecom companies on the hands have insisted that they are still at lost and would probably break ever than until 2005. They have both ruled out direct tariff.

The Managing Director of MTN Mr. Andrian would speaks sometimes in August 2006 that the economics of operating cost required by the business at this age, do not make a downward side, the Naira has witnessed in the recent times. This is not withstanding he stated that MTN tariff remains comparable to continental European Networks that are now at 6 to 7 years maturity, charge on average 15% higher than we do.

ECONET and MTN have both claimed that their supposedly high tariffs result from the enormous starts up cost they had to endure due to virtually nil telephone infrastructures. When they arrived in Nigeria and also an inefficient and disorganized power sector to top it all up, these companies added that the 285 US million, dollars they paid for the licenses were too high, indeed there is some truth in this claims. However, it will be difficult for any discerning mind to accept that the 285 US million dollars, ECONET and one have to consider the size of the Nigerian’s market it will served and harnessed, would generate enormous revenue for these telephone companies in the medium to long term.

To ask a simple question in how many countries are they operating with a year and sold over a million lines. Nigeria communication commission NCC has been called upon by very many Nigerians to put a check on the pricing structure of these GSM companies with NITEL lately coming into the frame with N22 per minute talk time at peak period, it is perceived that the competition will be more balances, if it is able into the market in the process , the tariff to both ECONET and MTN would have become untenable.

Another GSM menace, probably in the short term is non-challant attitudes of motorist in handling the set while driving, this necessitates the Kwara State Government to carve out a law banning the use of GSM while driving GSM may have increase the volume of armed robbery and assassinations in the country. Even banking hall. This though could be described as the failure of the police than anything else. If you are a stranger or visitor at Lagos, the false rule of the game is not to flaunt your GSM vandals, who serve as the conduct pipes to string GSM black market.

The law and show data carrying capacity of GSM telephones means that business government agencies, educational institutions, individuals etc. are still not fully reaping the benefit of GSM mobile telecommunications. The internet and fax capabilities of GSM mobile phones still have a lot to the desired in these are and make the development efficient.

What lies in the future? The operators have promises wonder coverage better connectively contributing to the reduction of motor accidents on major high ways due to the elimination of long journeys for pleasure and business. It is now convenient to place a call to business. Associates or relatives rather than waste valuable time embarking on sometimes needless journey.

1.2   STATEMENT OF PROBLEM OF THE STUDY

        The study will be conducted to investigate the roles of GSM in developing country. The studies will expatiate more on the importance of GSM. Also the study will examine in Kwara State of the country, these have been identified as lack of visionary leadership, corruption, lack of financial must to deliver efficient and effective service.

1. AIMS AND OBJECTIVES OF THE STUDY

The importance and usefulness of GSM in Nigeria has become widely accepted in our society. The result this is the growing and increasing of GSM has help in making use of GSM to get their product into the market and have better share in the market. This has provided to determine the relationships that exist between mobile telecommunication and social economics development in Nigeria. The objective helps to educate ways by which telecommunication can contribute meaningfully to the social economics development in Nigeria. The studies identify problems confronting mobile telecommunication in Nigeria.

1.4   SIGNIFICANCE OF THE STUDY

        The outfit of this research work could provide a bench mark fro economics circumstances, as well as problems attributed to social economics development mobile telecommunication operator so as to increase their level of efficiency and effectiveness.

        The result will be useful to the market as a source of communicating effectively than transportation.

        Also the result will be useful to government as it will provide useful information on the required amenities and level of availability.

        Above all this work will serve as a source of information to my student who may in the nearest future wish to undertake a similar research or further research.

1.5   SCOPE OF THE STUDY

        This study will principally cover all aspect of the roles of GSM in developing direct marketing in Nigeria; emphasis would be on the impact growth and contribution of GSM in developing towards the social economics and political advertisement of Nigeria.

        The research work will be limited to MTN Nigeria limited in Ilorin, Kwara State, where all the respondent shall be drawn from with the hope that the result will be equally applicable to related users.